How to find reputable credit repair services
Repairing your creditworthiness and creditworthiness is illustrated when a broken credit card is held together with a safety pin.
If you’ve been rejected for a credit card or loan because of embarrassing credit, you might think renting a loan repair service could help. However, do not sign a loan repair contract until you know what these companies can and can not do for you.
“It is important to know that there is no magic pill that credit repair companies can give you to repair your loan
What is a credit repair company?
A credit repair company reviews your credit reports from each credit bureau, examines negative items, and looks for errors. The company can then request the elimination of errors and negotiate with your creditors to settle disputes.
“Even though individuals can challenge false information themselves, they often choose a credit repair company because they do not want to engage with the credit bureaus or their creditors themselves,”
Credit repair services charge a monthly fee of between $ 80 and $ 129, A simple correction of your credit report can take only a month or two, while reports with multiple errors requiring negotiation and extensive documentation can take a year or more.
Credit repair companies have been known for years to charge high fees without helping consumers and sometimes worsening financial distress.
According to Ulzheimer, in 1996 a federal law called the Credit Repair Organizations Act (CROA) set rules for this type of service.
Self-regulation by the Professional Association of Credit Repair Services helped clean up the industry. In addition, the Federal Trade Commission has prosecuted and punished numerous loan repair companies for violating federal laws.
Before you contact a credit repair service
If you decide if you need a professional loan repair, you should look at your credit report. You will receive a free annual credit report from the three credit bureaus Equifax, Experian and TransUnion at AnnualCreditReport.com.
Reviewing the reports from each three is important because they do not always contain the same information.
When reviewing your credit report, check for deviating markings, such as missed payments or errors.
For example, the credit bureau or your lender may have confused you with another person with a similar name, so your credit report contains the wrong address and account information. According to the Consumer Financial Protection Bureau, errors related to your account status, balance and credit limit are also common.
If you hire a credit repair service, you will review each credit report with a company representative and provide documentation to support your disputes, such as paid bills or court records. Be prepared to answer frequent questions about your credit history during the credit repair process.
Repair of credit on self-production
This means you can start the process by fixing bugs yourself.
“Many real mistakes can be corrected by individuals, such as a medical bill paid by you that has not been fully reported as paid. “You can submit copies of the paid bills to the credit bureau, but you should always keep the original yourself.”
You also have the right to challenge a divergent brand that is not 100 percent accurate. A creditor reports that you are 90 days late when you were only 60 days late. If an invoice that went to the collection was sold to another collection calculator and your credit report shows the same overdue balance several times, you can ask the credit bureau to correct it.
Keep in mind that some legitimate derogatory information such as bankruptcies and accounts sent to debt collection will remain in your credit report for seven to 10 years. Unpaid liens can be reported indefinitely.